Engineering Alpha

Engineering Alpha

Creating a Simple Regime Detection Indicator for Trading

An Example of How to Create a Simple Regime Detection Algorithm

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Dec 20, 2022
∙ Paid

Market regime is the current state of the market and can be bullish, flat, or bearish. Being able to detect the current regime is important in knowing which strategy to choose, contrarian or trend following. This article presents a way to create and think about a regime detection algorithm.

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